United Pilots Say US Airways deal potential deal "extremely negative"

[luvn737s]

Just a few quick numbers for you. One measure of productivity is Sales Per Employee. In 2005 the last year HP ran as a standalone company the (SPE) was $196,667.00 per employee.

Contrast that to todays SPE of $330,000 for the consolidated US Airways.

Another measure is Labor as a percentage of total cost.

In 2005 US spent 19% on labor versus 21% for HP.

Seems on the surface at least that you owe me an apology Because unless Doug lied to the SEC these numbers are true and correct.

Piney- What was USAirways East's PROFIT per Employee in 2005? I believe they were "selling" themselves right into extinction. All you have proven is that there are economies of scale - yippee! It doesn't prove that the east has been the glory hole of profitability, just that economies of scale have benefitted the new US.

 

[WhatBag?]

[quote name='Fly' date='Apr 30 2008, 09:15 AM' post='600400


~ Jetz, they seem agitated with us. Wonder why :jerry:
[/quote]


Because you two have some unknown beef with US Airways that only makes both of you look angry, mean, and downright silly! Now go shine your "tulip" aircraft tail and maybe UAUA's troubles will go away!

 

[cltrat]

pretty laughable how some UA goof looks down their nose at US LOL anything US does to look bad UA manages to top LOL keep looking down that nose

 

[PHLfa88]

Piney, dispite your love affair with the East they are a major problem for US Airways and any merger partner. Thier attitudes are a lot like yours, piss poor!

LOOK IN THE MIRROR!! :down: :down:

 

[Fly]

I just reread Post #64. I suggest you do the same. (hint - you are reading into things that aren't there.)

Do I think a UAL/US merger is a bad idea? YES!

Did I think a UAL/CAL merger was a bad idea? YES!

Did I prefer a CAL merger? YES! (better for my seniority)

I prefer NO merger. Mergers are not good for employees. Has there ever been a merger where the employees came out thinking it was a success? (AA natives don't count after what they did to TWA) Mergers are painful and cause a lot of undue stress just so the top brass can have a money grab and leave the 'real' employees with the mess. It's not pretty.

It is not about looking down on US, it's about looking down on any management team who thinks zero of their employees and only about what is in it for themselves.

 

[PHLfa88]

Well if a pilot told you, it MUST be the truth. Management always tells the pilots individually first, then acts.




Which means that AWA is the surviving entity considering that they are the ones that bought US Airways.

Can't wait to see you pulling gear for everyone. That Nic award is BINDING, regardless of the 'surviving business enterprise'.

Are You That WHINY Female 757 F/O That Whined and Whined At The Webcast?

 

[WhatBag?]

I prefer NO merger. Mergers are not good for employees. Has there ever been a merger where the employees came out thinking it was a success? (AA natives don't count after what they did to TWA) Mergers are painful and cause a lot of undue stress just so the top brass can have a money grab and leave the 'real' employees with the mess. It's not pretty.

Now THAT we can agree on!!

 

[etops1]

i swear 767jetz . your like the 700UW of the usairways forum and the worldtraveler of the delta forum. i guess we need posters like you guys to keep things interesting

 

[Fly]

Are You That WHINY Female 757 F/O That Whined and Whined At The Webcast?

slap.slap.slap

I'm NOT a pilot. Shame on you for suggesting such a thing.


I will have to work on my delivery. A Pilot!? Now that hurt. I did dress up my kid as one for halloween once though


Here's my totally unimportant, but completely my own opinion........there will be an announced merge between US/UAL. We'll all sling it out on here. USA320 will announce that he knew it first (which is true since he's been saying it for 8 years now) Then management will screw it up anyway. What's new, right?

 

[zflygrl]

UAL pilots leader pans possible merger with US Air

April 29, 2008 6:52 PM ET


WASHINGTON (Reuters) - A "toxic stew" of problems with pilots and other issues at US Airways Inc would imperil any merger between that carrier and United Airlines, the leader of the United pilots' union said on Tuesday. While United has its own problems, the shortfalls at US Airways "run even deeper," said Steve Wallach, chairman of the Air Line Pilots Association (ALPA) chapter at United. Wallach said in a statement that reports of advanced merger discussions between United, a unit of UAL Corp and US Airways on Monday have generated "enormous concern" among pilots at United. They point to US Airways' financial and performance setbacks, as well as potential problems of combining work arrangements and seniority of union employees at both companies, if a merger were proposed. US Airways has failed to integrate pilots following its 2005 merger with America West Airlines. Divisions over seniority have prompted pilots at US Airways to abandon ALPA and form another union. The United pilots believe that problem alone could "imperil a United/US Airways" merger. "US Airways' pilot integration problems have created a toxic stew, as any carrier that seeks to merge with it will quickly discover," Wallach said. The United pilots urged management to focus on solving its own problems rather than continue with its "single-minded focus on consolidation." Continental Airlines Inc said on Sunday it pulled out of merger discussions with United in favor of exploring a marketing alliance with American Airlines, a unit AMR Corp and British Airways Plc . A source briefed on the matter said Continental was concerned with United's financial condition. United reported a quarterly loss of $537 million in the first quarter. United and US Airways have not commented on merger speculation. United shares closed less than 1 percent higher on Tuesday at $14.93 on Nasdaq and posted a slight gain after hours. US Airways shares, which rose sharply on Monday on reports of merger talks, were up another 4 percent on Tuesday at $8.96 on the New York Stock Exchange. The shares shed 15 cents after hours. Airline shares were broadly higher on a sharp decline in crude oil prices. Separately, US Airways reported that chief executive Doug Parker made $550,000 in base salary in 2007. He did not receive a bonus because the company did not meet its financial goals. Parker also received stock awards valued at $3.9 million when issued, but worth only about $200,000 if sold today, Parker said in a memo to employees. US Airways shares have fallen 75 percent during the past year.

(Reporting by John Crawley; )

 

[Poug Darker]

In this era of high fuel costs and tight margins, the competitive environment both domestically and internationally requires a large operation serving all points on the globe with maximum efficiency. This means going everywhere and being the dominant player in as many places as possible. Internal growth at this time is difficult due to the tight credit/vc market/slumping stock market. Mergers accomplish a few things quickly and efficiently: Growth, Pricing Power, and Capacity control. Extrapolated to the extreme, this consolidation would result in a monopolistic marketplace. Kind of ironic that deregulation would promote monopolies, isn't it?
I agree whole heartedly that mergers are not good for employees. However, companies are not operated for the pleasure of the employee, but rather to turn a profit, satisfy loans and covenants, build the business, save for the future, and satiate investors with stock price increases and dividends.
Since deregulation has also spawned LUV, the overwhelmingly large low-fare domestic fare-setter, all others in the market must compete. The only way to compete is to be big. The economies of scale and the quasi-monopolistic power that a US-UAL combination would provide, although not without some turmoil to the indiviual employee, would be a long-term positive for both corporations, including their employees.
Cheers.

 

[bigbusboy]

In this era of high fuel costs and tight margins, the competitive environment both domestically and internationally requires a large operation serving all points on the globe with maximum efficiency. This means going everywhere and being the dominant player in as many places as possible. Internal growth at this time is difficult due to the tight credit/vc market/slumping stock market. Mergers accomplish a few things quickly and efficiently: Growth, Pricing Power, and Capacity control. Extrapolated to the extreme, this consolidation would result in a monopolistic marketplace. Kind of ironic that deregulation would promote monopolies, isn't it?
I agree whole heartedly that mergers are not good for employees. However, companies are not operated for the pleasure of the employee, but rather to turn a profit, satisfy loans and covenants, build the business, save for the future, and satiate investors with stock price increases and dividends.
Since deregulation has also spawned LUV, the overwhelmingly large low-fare domestic fare-setter, all others in the market must compete. The only way to compete is to be big. The economies of scale and the quasi-monopolistic power that a US-UAL combination would provide, although not without some turmoil to the indiviual employee, would be a long-term positive for both corporations, including their employees.
Cheers.

Well said and spot on. In laymens terms, If you can't stand the heat, get out of the kitchen. One interesting point though about UA ALPA. Their statement never said they would do whatever it takes to stop this merger proposal. It just said they have serious concerns and urged management to explore other alternatives. The issues ALPA referred to are very serious and will be major hurdles. Insurmountable? No! Tough? Absolutely!

 

[USA320Pilot]

British Airways says it is looking at ways to cooperate with American and Continental

UAL Corp.-owned United and US Airways Group Inc. are now in advanced talks on joining their businesses to create what could be the world's largest carrier

See Story

Regards,

USA320Pilot

 

[FlyDCJets]

It would be nice for USAPA to get out in front of this issue. USAPA has the power to derail this merger as do the UAL pilots and I think they should send it packing.

Failing that I think they should demand that Parker & Kirby resign as part of the price to allow the deal to go through.

Although USAPA was elected to reporesent the pilot group, they have no $ nor have a contract which probably 18 to 24 motnhs away to even reach an agreement. What power do they have to even stop any sort of merger?

 

[700UW]

No union can stop a merger.